QUESTION 25 Movado stock paid a dividend yesterday of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The price of Movado common stock today is $35 per share. If Movado decides to issue new common stock, flotation costs will equal 4% of the market price. Movado's marginal tax rate is 21%. Based on the above information, the cost of equity is O 11.25 10.4196 O 12.5396 O 13.1296